2019 (11) TMI 1795 - AT - Income Tax

Tribunal remands appeal for valuation report before CIT(A) for re-adjudication

Smt. S. Akshitha, Shri. Arulselvam Versus The Deputy Commissioner of Income Tax, Ward 7 (1), Chennai

Smt. S. Akshitha, Shri. Arulselvam Versus The Deputy Commissioner of Income Tax, Ward 7 (1), Chennai - TMI Issues:Appeal against order of CIT(A) regarding dismissal of assessee's appeal due to lack of valuation report from DVO under section 50(C)(2) of the Income Tax Act, 1961.Analysis:The appeals were filed against the order of the Commissioner of Income Tax (Appeals) by the assessees for the assessment year 2016-17. The Assessee's representative argued that the CIT(A) dismissed the appeal despite the DVO's valuation report not being available, which was requested by the assessee. The Assessing Officer had referred the case to the valuation cell for the fair market value of the property, subject to rectification according to the Valuation Officer's report. The Authorized Representative highlighted this point. The Departmental Representative supported the orders of the Assessing Officer and the CIT(A).Upon reviewing the submissions and the available records, the Tribunal observed that the CIT(A) had noted multiple adjournments sought by the assessee but found no evidence of the DVO's report being produced as requested under section 50(C)(2) of the Act. Without this valuation report, the hearing of the assessee's appeal would be futile. Therefore, in the interest of justice, the Tribunal decided to restore the issue in the appeals to the file of the CIT(A) for re-adjudication after the receipt of the valuation report by the DVO as per the Act. Consequently, both appeals filed by the assessees were partly allowed for statistical purposes.The judgment was pronounced on the 19th day of November 2019 in Chennai by Shri George Mathan, Judicial Member.